China eyes lifting tariffs on vital US imports amid trade strains
Chinese authorities are considering suspending the 125 per cent tariffs on certain goods imported from the USA, according to individuals familiar with the matter, as cited by Bloomberg. The rationale behind this consideration is the economic impact of the trade war, which is placing a particular burden on some industrial sectors.
In response to the escalation of the trade war, Beijing imposed tariffs of 125% on US goods. Although the Americans had already begun making exceptions for electronics, the Chinese are now contemplating a similar approach. According to Bloomberg, Beijing is considering removing additional charges for medical equipment and certain chemicals used in industry, such as ethane.
China considers lifting selected tariffs
The same sources suggest that China also aims to remove tariffs on aircraft leasing. Chinese carriers do not own all of their aircraft and must pay external companies leasing fees to use them. Additional tariffs could severely impact their finances.
The agency reminds us that China is the world's largest producer of plastics. Nonetheless, certain factories depend on ethane, which is primarily imported from the United States. China's Ministry of Finance and the local customs service have not commented on these reports. Bloomberg notes that the list of Chinese exemptions may not progress beyond the discussion stage.
